Staff Reports

Artesia General Hospital has been named one of 10 new participants in the Centers for Medicare & Medicaid Services (CMS) Rural Community Hospital Demonstration Program, a national initiative aimed at strengthening rural healthcare access.

The Rural Community Hospital Demonstration Program supports the long-term sustainability of small rural hospitals by testing cost-based reimbursement models for Medicare inpatient services. Traditional Medicare payment systems often leave rural hospitals underfunded due to lower patient volumes and higher operating costs. This program addresses that challenge by reimbursing participating hospitals based on the actual cost of providing care, rather than standard fixed rates.

“Being selected for the RCH Demonstration Program is a meaningful milestone for Artesia General Hospital,” said Cory Yates, chief financial officer at AGH. “This opportunity reflects CMS’s recognition of the critical work being carried out here in southeast New Mexico—where rural hospitals like ours serve as a lifeline for entire communities. The financial support provided through this program will allow us to reinvest in our facilities, expand access to care, upgrade essential medical equipment, and ensure we can continue meeting the growing needs of our patients with excellence and compassion.”

By transitioning to a cost-based model, hospitals like AGH are better positioned to stabilize finances, retain skilled professionals, improve infrastructure and maintain essential services for aging and underserved populations. Ultimately, the program helps rural hospitals remain open and responsive to local healthcare needs, reducing the need for patients to travel long distances for inpatient care.

AGH was selected through a competitive application process initiated by CMS in December 2024. With this designation, AGH joins 20 previously selected hospitals and nine other new awardees, including Roosevelt General Hospital in Portales, bringing the program to its cap of 30 participating hospitals nationwide. AGH will participate in the demonstration program through June 2028.

For more information about the Rural Community Hospital Demonstration Program, visit cms.gov.

Artesia General Hospital is a not-for-profit healthcare provider serving southeast New Mexico with compassionate, high-quality care. It is the only healthcare facility in New Mexico certified as a Great Place to Work and has been recognized as one of the state’s most recommended hospitals by Becker’s Hospital Review, based on independent patient feedback. The hospital offers a broad range of services designed to meet the evolving needs of communities across the region.